Whiting USA Trust II Announces Trust Quarterly Distribution
May 07 2013 - 4:13PM
Business Wire
Whiting USA Trust II (NYSE:WHZ) announced the second Trust
distribution in 2013, which relates to net profits generated during
the first quarterly payment period of 2013.
Unitholders of record on May 20, 2013 will receive a
distribution amounting to $11,626,972 or $0.631901 per unit, which
is payable on or before May 30, 2013.
Volumes, average sales prices and net profits for the quarterly
payment period were:
Sales volumes: Oil (Bbl) 317,211 Natural gas (Mcf)
600,939 Total (BOE) 417,368 Average sales prices: Oil (per
Bbl) $ 79.40 Natural gas (per Mcf)(1) $ 4.59
Gross proceeds:
Oil sales $ 25,187,392 Natural gas sales 2,759,720
Total gross proceeds $ 27,947,112 Costs: Lease operating
expenses $ 9,822,507 Production taxes 1,434,393 Development costs
3,427,303 Total costs $ 14,684,203
Net profits
$ 13,262,909 Percentage allocable to Trust’s Net Profits Interest
90 %
Total cash available for the Trust
$ 11,936,618 Provision for estimated Trust expenses (300,000 )
Montana state income taxes withheld (9,646 ) Net cash
proceeds available for distribution $ 11,626,972
Trust units outstanding
18,400,000 Cash distribution per Trust unit $
0.631901
(1) The average sales price of natural gas
for the gas production months within the distribution period
exceeded the average NYMEX gas prices for those same months within
the period due to the “liquids rich” content of a portion of the
natural gas volumes produced by the underlying properties.
The net profits interest represents the right to receive 90% of
the net proceeds from Whiting Petroleum Corporation’s interests in
certain existing oil and natural gas properties located primarily
in the Rocky Mountains, Permian Basin, Gulf Coast and Mid-Continent
regions of the United States. The net profits interest will
terminate on the later to occur of (1) December 31, 2021, or (2)
the time when 11.79 MMBOE have been produced from the underlying
properties and sold (which amount is equivalent to 10.61 MMBOE
attributable to the net profits interest), and the Trust will soon
thereafter wind up its affairs and terminate, after which it will
pay no further distributions.
As of March 31, 2013, on a cumulative accrual basis, 2.03 MMBOE
(19%) of the Trust’s total 10.61 MMBOE have been produced and sold.
Based on the Trust’s reserve report for the underlying properties
as of December 31, 2012, the 11.79 MMBOE of reserves (10.61 MMBOE
to the 90% net profits interest) are projected to be produced from
the underlying properties prior to December 31, 2021. Additionally,
the year-end reserve report reflects an expected year over year
decline rate of approximately 9.0% between 2013 and 2021. However,
cash distributions to unitholders may decline at a faster rate than
the rate of production due to fixed and semi-variable costs
attributable to the underlying properties, or if expected future
development is delayed, reduced or cancelled.
This press release contains forward-looking statements,
including all statements made in this press release other than
statements of historical fact. No assurances can be given that such
statements will prove to be correct. The announced distributable
amount is based, in part, on the amount of cash received or
expected to be received by the Trust from Whiting Petroleum
Corporation pursuant to the net profits interest with respect to
the relevant quarterly period. Any differences in actual cash
receipts by the Trust could affect this distributable amount. Other
important factors that could cause actual results to differ
materially include expenses of the Trust, fluctuations in oil and
natural gas prices, uncertainty of estimates of oil and natural gas
reserves and production, risks inherent in the operation,
production and development of oil and gas properties, and future
production and development costs. Statements made in this press
release are qualified by the cautionary statements made in this
press release. The Trustee does not intend, and assumes no
obligation, to update any of the statements included in this press
release.
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